Two Hands seeks to revolutionise food systems for a more sustainable future

The agrifood industry faces many challenges today, such as food waste and losses, food fraud and an imbalance of power between middlemen and farmers [1]. As society draws closer to the United Nations’ 2030 Sustainable Development Goals, the industry aims to become healthier, more sustainable and more transparent [1][2]. By investing in technology and improving practices, Two Hands believes tech and reimagined food supply chains can address food loss, food fraud, deliver ESG reporting and democratise supply chain power. The company aims to shift the balance of power away from middlemen and toward fishers, farmers and chefs. Furthermore, the company believes its blockchain-authenticated initiative for measuring, verifying and reporting carbon, greenhouse gases emissions (GHGe) and sustainability is the first-to-market and with it aims to restore trust and transparency between producers, chefs and consumers globally. 

Industry overview and challenges 

Food producers face a series of challenges that threaten their livelihoods and the future of the UK farming and fishing industries. Industrialised food production has increasingly commoditised farmers, granting excessive power to supply chain intermediaries [3]. Although food producers bear much of the production risk, the intermediaries and food buyers, such as processors, transport companies and retailers keep, much of the value made in the food supply chain [4]. Most of the profit goes to the middlemen who purchase farm products at low prices while selling the same products at inflated prices to consumers [5]. Farmers face low profits, sometimes far less than 1p of the food they produce [4]. 

The rise of food fraud further exacerbates this issue. Fraudulent activities, such as product misrepresentation or substitutions [6], undermine the trust in the supply chain and threaten farmers’ already thin margins [7]. It is reported that food fraud impacts around 1% of the global food industry and costs up to $40bn annually [8]. Additionally, the scale of food loss represents a considerable loss of economic value for the players in food production and supply chains. Globally, around 13.2% of food produced is lost between harvest and retail [9], while the global value of lost or wasted food is estimated at a staggering $1tn in 2015 [10].  

With the urgent need to halve global food waste at both retail and consumer levels by 2030 [11], farmers are not only dealing with low margins but also grappling with rising production costs driven by the need to meet UK sustainability [12] and net zero targets [13] while adapting to market events such as Brexit [14]. Most farmers lack the time and resources to address these evolving pressures, according to Two Hands. 

Moreover, the demographic profile of farming is concerning. The average age of farmers is 60 globally [15], including in the UK, where nearly four in 10 farmers were already over the age of 65 in 2012 [16]. By 2023, over a third of all farm holders in England were over the age of 65. [17]. This ageing demographic is a sign of the increasing pressures in the industry, including perceptions of low margins [18] and financial instability driving younger generations away [19]. The agricultural sector has struggled to attract youth, further compounding the risks to the industry’s long-term sustainability [20]. As a result, smaller rural communities are declining, and their populations and economic vitality are lost [21].  

In response to the changing industry landscape, embracing technological advancements can help UK farmers optimise resource allocation and improve efficiency [22]. Over and above, farmers need better routes to access the market and greater transparency along the supply chain to ensure that they capture greater value from their produce [4].  

Introducing Two Hands

Two Hands (2h) is a platform digitising and authenticating food supply chains directly connecting fishers, farmers, and end-buyers enabling a needed reimagination of supply chains. End-buyers include restaurants, hotels, pubs and hospitals. The company aims to disrupt food supply chains to restore provenance, traceability and human connections to the food industry while having a profound impact on net zero.  

2h plans to reinvent food supply chains using blockchain, smart-tagging and bespoke technology to underpin its solution. The company aims to democratise food supply chains, creating an environment where people, communities, the environment and shareholders are all taken into consideration. 

How does Two Hands work? 

2h aims to increase profitability and solve major pain points for both food producers, such as farmers and fishers, and chefs, without increasing their costs. According to the company, producers are recognised and rewarded for their quality and their efforts to positively impact net zero and sustainability goals. In turn, chefs receive authenticated products, so they can be sure of the origin of their produce, as well as its sustainability impact. 

Reportedly, chefs can order produce through the 2h marketplace, selecting items based on region, producer or type of product. Products are tagged by producers and packed for restaurant orders, and the data is then sent to 2h to be uploaded to the blockchain. 2h organises pickups, processing, cross-docking and deliveries with partners directly to restaurants.  

At each change of custody, the company asserts that the data is updated on the blockchain. Upon arrival at a restaurant, chefs and consumers can scan the smart tag to view the sacred story of the producer, the beauty of their region and sustainability and product information. They can also verify the journey of the product via the 2h blockchain dashboard. Chefs can then assess the quality of producers. Based on this, chefs can enter into agreements for future purchases. This is currently not possible with wholesalers, the company claims. 

According to the company, 2h facilitates invoice and supply-chain financing based on end-buyer orders. Consequently, all intermediaries between the farmer and the end-buyer are turned into a service provider, providing the service required by 2h. From its work across the industry, 2h reports the platform knows: the market farmgate price, the restaurant buying price and all supply chain costs. The company also states that the platform analyses market prices and pays better prices to its producers and end-buyers. 2h reports that when joining the platform, end-buyers complete KYC in minutes, with an approved finance limit, allowing them to place orders without needing to reapply for invoice financing for every transaction.  

By changing supply chain participants to service providers, 2h claims to save over 20% in supply chain costs. These savings come from two sources: 1) since no intermediary buys inventory, their risks and costs are reduced, and (2) by removing unnecessary middlemen. 2h asserts, this allows the company to pay farmers and fishers above market price. Chefs are offered competitive or lower prices for a value-added product. Reportedly, 2h charges up to a 14% transaction fee per sale. At present, the company reports they increase profits, solve significant pain points and address net zero all at no cost to the platform’s producers and end-buyers.

What’s next for Two Hands 

The company reports that the 2h platform has been operating in Australia and China for five years, and now aims to expand into the UK, beginning in Scotland with plans to assist producers with their Brexit and net zero challenges.  

In its net zero initiative, the company reports it is collaborating with US and UK tech firms, as well as the Scottish Rural College (SRUC) to organise and pay for the blockchain authentication of measuring, verification and recording (MVR) of each farm’s carbon inventory, GHGe, biodiversity, water, air and soil quality, pollinators and farmer well-being. According to the company, all MVR will adhere to international protocols, providing a baseline for SRUC to provide regenerative farming plans aimed at helping farmers maximise their carbon sequestration and minimise their GHGe. The company’s modelling suggests the cost of MVR is less than five pence per kilo, compared to the average invoice price for beef from a steer at £12 per kilo.     

According to the company, where carbon markets have been exposed to significant greenwashing, the world has not yet seen this very high level of blockchain authenticated carbon inventory, GHGe and sustainability measures back to source scientific data. 

Importantly, the 2h platform’s blockchain authentication of the entire supply chain enables authenticated ESG regulatory reporting to end-buyers and consumers at scale, aggregated at institutional level. Now, the company claims, institutions will have the highest quality measures of carbon footprint and United Nations Sustainability Goals against their aspirational goals. The company’s modelling suggests 90% of the carbon and biodiversity market income streams will be paid to the farmer with less than 10% for 2hs’ margin and MVR costs.  

The company has chosen to use Floww’s innovative infrastructure to facilitate its funding efforts and help it achieve its future goals.  

*Floww Markets Limited is a company authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 980098.

The information and imagery contained within this article does not represent the opinions of Floww. Floww does not have a view on opinions provided by Two Hands in this article and elsewhere where they may be expressed, and is not responsible or liable for the information within this article.